Department for Work and Pensions

Private Pensions

Esther McVey: Today the Government is publishing a White Paper “Protecting Defined Benefit Pension Schemes” which sets out our proposals to improve confidence in defined benefit pensions. It builds on last year’s Green Paper, “Security and Sustainability in Defined Benefit Pension Schemes”.As we said when we published the Green Paper, defined benefit schemes are an important pillar of the UK economy. Around £1.5 trillion is invested by about 5,500 schemes. More importantly, these pensions are a key part of many people’s retirement income. There are 10.5 million members in the UK with a defined benefit pension: it is crucially important that the system delivers the retirement income they have saved for over many years of hard work.We know that the vast majority of employers with these schemes want to do the right thing by their employees. Our 2017 Green Paper examined the evidence around defined benefit scheme affordability, and concluded that the majority of employers can and do fund their schemes appropriately. The responses to the Green Paper supported this. However, to help trustees and employers work even more effectively towards a long-term goal, we are introducing changes to scheme funding. Where employers want the best for their employees, we want to ensure that the system supports this.However, it is clear that not all employers want to act fairly. At the heart of the White Paper is a strong message for employers tempted to act in a way that is detrimental to their pension scheme. We will not tolerate such behaviour, and will come down heavily on attempts by employers to avoid their responsibilities. We are supporting the Pensions Regulator to be a clearer, quicker and tougher organisation by giving it new and improved powers to gather information and require employer co-operation. Where there is evidence of unscrupulous behaviour, we are introducing measures including a punitive fines regime and, in the most serious cases, a new criminal offence for those who deliberately and recklessly put their pension scheme at risk.Finally, we are consulting on the legislative framework and accreditation regime for consolidation, providing industry with the opportunity to innovate whilst ensuring there are robust safeguards in place to protect members’ benefits. This will be the first step in enabling schemes greater opportunities to realise the benefits of scale achieved through consolidation, and will benefit both members and employers.The White Paper relates only to private sector defined benefit schemes and is not concerned with other types of pension provision, such as public service pension schemes or defined contribution schemes. A response to our consultation on the future of the British Steel Pension Scheme (BSPS) is included in chapter four of the White Paper.Defined benefit pensions are a subject of great importance to many people, representing their hopes for the future. We are determined to ensure that these hopes are protected. This White Paper is a key step towards a more secure future for members of these schemes.


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Home Office

Croatia

Caroline Nokes: We will today inform the European Commission and the Croatian Government of our decision not to extend further the transitional restrictions on Croatian citizens’ access to the UK labour market when they expire on 30 June 2018. This is in line with the provisions of the Accession Treaty for Croatia, under which temporary restrictions have been in force since Croatia joined the European Union on 1 July 2013. There are only three remaining member states (Austria, Slovenia and the Netherlands) who also currently impose transitional restrictions on Croatians, and will need to consider the case for extending these before July.Since 2013 when Croatia joined the EU, their citizens, unless exempt, require authorisation from the Home Office before they can take up a post in the UK. After 12 months’ employment, Croatians are free to work in the UK without restriction.It was always the case that these restrictions were temporary and it would only be legal to extend them further if there was an economic case that to do otherwise would cause or threaten serious labour market disturbance. We have examined the evidence carefully and no such case can be made.The UK labour market is very strong with near record levels of unemployment and employment. There is a low volume of flows from Croatia to the UK, and a low number of resident Croatians in the UK. Long-term international migration flows suggest an estimated total as low as 4,000 long-term immigrants from Malta, Cyprus and Croatia arrived in the UK in the year to June (ONS, 2017). Estimates of the total number of Croatians resident in the UK in 2016 are below 10,000 (ONS, 2016). The cultural/social network ‘pull’ factor is limited, particularly given the much larger Croatian diaspora size in other EU Member States (e.g. Germany).This is in contrast to our consideration of extending controls for the EU2 (Romania and Bulgaria) when our economy was still fragile after the recession. Figures at the same point of those transitional controls showed there were around 57,000 Romanians and 35,000 Bulgarians living in the UK.Our conclusion is that there is insufficient evidence to satisfy the test of ‘serious labour market disturbance’ that is required to extend the restrictions.The decision not to extend the restrictions will mean that Croatian citizens will be able to seek and obtain employment in the UK on the same basis as currently enjoyed by all other EU citizens.We will not discriminate between nationals of the EU member states in our implementation of the Citizens’ Rights deal. Croatian citizens will be able to apply for settled status on the same terms as all other EU citizens.We have been clear that we will take back control of immigration and our borders when we leave the EU, and we will put in place an immigration system which works in the best interests of the whole of the UK.


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Treasury

ECOFIN: 13 March 2018

Elizabeth Truss: A meeting of the Economic and Financial Affairs Council (ECOFIN) was held in Brussels on 13 March 2018. The UK was represented by Mark Bowman (Director General, International Finance, HM Treasury). Council discussed the following:Early Morning SessionThe Eurogroup President briefed Ministers on the outcomes of the 12 March meeting of the Eurogroup, and the Commission provided an update on the current economic situation in the EU. Council also discussed progress on the Banking Package, aimed at reducing risk in the banking industry, agreeing to defer agreement on a general approach until a later date.Mandatory Disclosure RulesThe Council reached political agreement on the Council Directive regarding the mandatory automatic exchange of information in the field of taxation in relation to reportable cross-border arrangements.Current Financial Services Legislative ProposalsThe Bulgarian Presidency provided an update on current legislative proposals in the field of financial services. The Commission presented a package of proposals relating to the EU’s Capital Markets Union.European Semester 2018The Council exchanged views on the implementation of country-specific recommendations with a focus on productivity growth. Ireland and the Netherlands provided presentations on their experience of reforms to improve productivity growth. The Council also adopted the conclusions on the European Court of Auditors Special Report on the Macroeconomic Imbalance Procedure (MIP).G20 Meeting The Council approved the EU Terms of reference for the G20 meeting on 19-20 March in Buenos Aires.Status of the Implementation of Financial Services LegislationThe Commission informed the Council on the status of the implementation of financial services legislation.


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Department for Exiting the European Union

General Affairs Council, March 2018

Mr Steve Baker: Lord Callanan, Minister of State for Exiting the European Union, has made the following statement:I will attend the General Affairs Council in Brussels on 20 March 2018 to represent the UK. Until we leave the European Union, we remain committed to fulfilling our rights and obligations as a full member.The provisional agenda includes:Preparation of the European Council on 22-23 March 2018Ministers will discuss the draft conclusions for the March European Council. The conclusions cover Jobs, Growth and Competitiveness, which include the Single Market, Trade, the European Semester and Social Issues. The EU-Western Balkans Summit in Sofia on 17 May 2018 is also covered in the conclusions.European Council follow-upThe Bulgarian Presidency will update Ministers on progress in implementing December European Council conclusions which covered Security and Defence, Social Issues, Education and Culture, Climate Change, and Jerusalem.2018 European SemesterThe Commission will present a report on priorities for the 2018 European semester. This is expected to cover the implementation of reforms undertaken by Member States in response to their Country-Specific Recommendations last year. 


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